LOS ANGELES, California — Prepare for a higher Netflix bill.
Netflix has increased the cost of its basic package from $10 to $12 and its premium package from $20 to $23. However, the $7 ad-supported package remains unchanged.
The new prices are effective immediately. The last time U.S. subscribers saw a price increase was in January 2022.
Netflix justified the price hike during their Q3 earnings announcement, stating, “With the enhanced value we offer, we sometimes ask our members for a slight increase.” They added that their base price is competitive, pointing out that it’s cheaper than an average movie ticket in the U.S.
Wondering about Disney and Hulu? They’re raising prices too. To navigate this, here are some money-saving tips.
The escalating costs reflect the changing landscape of the streaming world, where services are becoming more stringent with price hikes and password sharing. It’s becoming evident that the days of affordable streaming are behind us.
Recent announcements from major streaming platforms like Netflix, Disney+, Hulu, and Peacock indicate a trend of rising prices. The Wall Street Journal has projected that the cost for major ad-free streaming will surge by nearly 25% within the next year.
On a related note, Netflix is also making moves like introducing an ad-tier and cracking down on account sharing.
Financially, Netflix reported a Q3 revenue of $8.54 billion, a rise from $7.9 billion the previous year. Their net profit also saw a 20% increase, hitting $1.68 billion, with an addition of 8.8 million subscribers for the quarter.